Make contributions to retirement account

Assignment Help Finance Basics
Reference no: EM132467222

Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 70.0 when he fully retires, he will begin to make annual withdrawals of $129,468.00 from his retirement account until he turns 91.00. After this final withdrawal, he wants $1.59 million remaining in his account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 4.00% interest rate.

Reference no: EM132467222

Questions Cloud

Calculate the npv and decide if the system : A new computer system will require an initial outlay of $23,500, but it will increase the firm's cash flows by $5,000 a year for each of the next 7 years.
KB7043 Multidisciplinary Design and Engineering Optimisation : KB7043 Multidisciplinary Design and Engineering Optimisation Assignment Help and Solution - Northumbria University, UK. Design Optimisation Problems
What is the firms weighted average cost of capital : The corporate tax rate is 20%. What is the firm's weighted average cost of capital?
Compute the present value of liabilities : Compute the present value of your liabilities. Do you have enough assets to cover those liabilities?
Make contributions to retirement account : Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00. During these years of part-time work, he will neither make
Firm overall operations-tri-global : Tri-Global is evaluating a project that will generate perpetual cash flows of $60,000 per year beginning next year.
What is the market value of the firms equity-cleansweep : CleanSweep has 2 million shares of common stock outstanding at a book value of $2 per share. The stock trades for $4.00 per share. It also has $2 million
Calculate the revenue collected from each room type : Show a pie chart to display the revenue breakdown from the last question. Which room type generated highest revenue and how much revenue?
Explain why you would choose a mutual fund : Explain why you would choose a mutual fund and what are the risks of keeping your money in a mutual fund over a savings account?

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute probability of the payment

Berkshire Sports, Corporation, operates a mail-order running-shoe business. Management is planning dropping its policy of no credit. The credit policy under consideration by Berkshire follows:

  Present value of a security

What is the present value of a security that pays $1,000 at the end of each year for 10 years? Assume the interest rate is 10% per year.

  Contemplating a business venture

You are contemplating a business venture, which involves an initial equipment purchase of $150,000. You want to analyze the venture over a project life

  Confidence interval from a simple random sample of size

Suppose we have a population with known variance σ2 = 10 and we plan to construct a 95% confidence interval from a simple random sample of size n. What is the minimum value of n that will result in a 95% confidence interval with total width less t..

  Joe has two children sydney age 5 and william age 2 that he

joe has two children sydney age 5 and william age 2 that he wants to provide for their education funding. currently

  What is the preemptive right of common stockholders in what

what is the preemptive right of common stockholders? in what type of company is the preemptive right important?

  What is the pure expectations theory

What is the pure expectations theory? What does the pure expectations theory imply about the term structure of interest rates?

  Why financial manager should concern with quality initiative

Create an argument that explains why financial managers should be concerned with quality initiatives in the health care organization.

  Describe the relationship among the chart of accounts

http://www.solutioninn.com/describe-the-relationship-among-the-chart-of-accounts-the-balance

  Differences between operating leases and financial leases

What are the primary differences between operating leases and financial leases?- How does a leveraged lease differ from a nonleveraged financial lease?

  What is the average of using simulation

Objective type questions on capital budgeting and what is the average of using simulation in the capital budgeting process is

  What was the times interest earned ratio

Calculating the Times Interest Earned Ratio. For the most recent year, Seether, Inc., had sales of $534,000, cost of goods sold of $241,680.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd